Ethereum Retraces Over 10% After Reaching $2,730 Local High

Ethereum retraced over 10% after reaching a local high of $2,730, currently testing support at $2,400. Analysts are divided on the future direction, with some viewing the pullback as healthy while others predict a deeper correction.

Key points include:

ETH is facing resistance around the 0.026 BTC level in its pairing with Bitcoin.
Support at $2,400 is crucial for maintaining bullish momentum.
A break below this level could lead to further declines.
If ETH outperforms BTC, it may trigger an altseason.

Currently trading at $2,485, Ethereum has failed to hold above its 200-day simple moving average (SMA) at $2,701, which served as a resistance zone. The immediate support is now at the 200-day exponential moving average (EMA) around $2,438.

Volume has remained high, indicating active market participation. Holding above $2,400 could allow for another attempt at reclaiming higher levels, while losing this support may favor bearish momentum.